As the imminent verdict on Scotland's long running minimum unit pricing (MUP) battle edges closer, a new report on the pub trade suggests considerable support amongst the trade for policy approaches called for by public health groups.
The report, Pubs Quizzed: What Publicans Think About Policy, Public Health and the Changing Trade, released by the Institute of Alcohol Studies (IAS) is based on the results of a national survey of pub managers. It found 83% believe supermarket alcohol is too cheap, with almost half (48%) saying competition from shops and supermarkets among their top three biggest concerns. Almost three-quarters (72%) of publicans believe the government should raise taxes on alcohol in supermarkets to tackle the problem, whilst 41% are in favour of MUP versus 22% against.
The report chimes with recent findings such as a YouGov consumer survey exploring the reasons behind the shift to home drinking in which price was highlighted as a key driver for 86% home drinkers. Certainly the widening gap between on and off-trade prices appears to have played a significant role in driving the shift. A landmark turning point for beer sales in 2016 saw more beer sold by the off-trade for the first time, although significant growth in home drinking has been associated with the democratisation of wine.
Price though cannot be considered the sole driver of pubs fortunes over recent decades with many wider contextual factors at play including changes in licensing legislation and declining drinking rates amongst young people. Despite the continued decline in pub numbers, the report found 53% of publicans felt more optimistic about their future, whilst only 9% felt things would get worse. Some pubs are evidently finding success through diversification, particularly through food and non-alcoholic drinks such as coffee, whilst just 14% cited the smoking ban as amongst the top three reasons behind pub closures.
The survey also identified other interesting findings; 45% felt they were happy with their duty rates versus 53% who wished to see a reduction. Observers may have expected a greater disparity in these figures given talk of an uneven playing field between on and off-trade retailers, though the majority of pubs received a £1,000 discount on their rates as announced in the last budget. Also perhaps surprising, the majority of publicans supported a reduction in the drink drive limit, though the figure was notably lower in rural areas, whilst 44% described the UK as having either an unhealthy or very unhealthy relationship with alcohol.
The future of pubs undoubtedly remains subject to uncertainly, just as with most of the UK's business economy. MUP may prove a significant development and work in pub's favour by reducing the price pull of the off-trade's cheapest drinks. Even if this proves to be the case, ending the long term decline in overall pub numbers will certainly require further strategies and diversification to prevent the strengthening grip of the off-trade on consumption.
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